diff --git a/README.md b/README.md
index 243f2632e5..f56bca44a1 100644
--- a/README.md
+++ b/README.md
@@ -41,6 +41,8 @@
 
   13. GForce is optimised for `.SD[val]` and `col[val]` where `val` is a positive length-1 value. Partly addresses [#523](https://github.com/Rdatatable/data.table/issues/523).
 
+  14. Run `install_name_tool` when building on OS X to ensure that the install name for datatable.so matches its filename. Fixes [#1144](https://github.com/Rdatatable/data.table/issues/1144). Thanks to @chenghlee for the PR.
+
 #### BUG FIXES
 
   1. Now compiles and runs on IBM AIX gcc. Thanks to Vinh Nguyen for investigation and testing, [#1351](https://github.com/Rdatatable/data.table/issues/1351).
diff --git a/src/Makevars b/src/Makevars
index df3b51ef3b..2e4dd1bd5b 100644
--- a/src/Makevars
+++ b/src/Makevars
@@ -1,5 +1,6 @@
 
 all: $(SHLIB)
 	mv $(SHLIB) datatable$(SHLIB_EXT)
+	if [ `uname -s` = 'Darwin' ]; then install_name_tool -id datatable$(SHLIB_EXT) datatable$(SHLIB_EXT); fi